The division of property can be a rather complex and complicated manner as part of a divorce proceeding. The Family Law Act contains the set of specific methods and procedures used to divide property between divorcing couples. In Toronto, this is not just a simple manner of dividing up individual assets, but rather requires going through a process known as equalization of net family property. The property, in this context, is referred to any type of asset which was acquired during the marriage and includes real estate, bank accounts, stocks, bonds, vehicles, pensions, and more.
In addition, the total liabilities the couple has accumulated is examined, since this value is subtracted from the gross total value of all assets to arrive at the net total value of all assets. Equalization requires examining all assets, whether they were acquired individually or jointly during the marriage. Further, liabilities are examined in the same manner, as to whether they are individual or joint liabilities.
To illustrate how equalization is carried out, one person has acquired individual assets valued at $50,000 and liabilities of $10,000 while the other person has acquired individual assets valued at $75,000 and liabilities of $20,000. The first person’s net assets would amount to $40,000 and the second person’s net assets would amount to $45,000. Since there is a variance of $5,000, the second person would essentially owe the first one $2,500 in this basic example.
However, joint assets and liabilities must also be considered and evaluated. This is where things often become more complex. For instance, what happens to the marital home, if it is owned or being purchased? Does the divorcing couple sell it and split the proceeds or does one person reimburse the other for their interest in the property? Further, in cases where there are minor children involved, there can be specific stipulations as to how property will be divided and when.
Dividing up property, assets, and liabilities can quickly turn into a nightmare, further adding to the emotional stresses of divorce. In order to ensure you receive a fair and satisfactory division of property settlement, it is highly recommended you seek advice and representation from qualified and experienced family lawyers in Toronto, who specialize in family law.
Going through a divorce is often a very stressful and emotional period of time. You might overlook certain assets or liabilities and your lawyer is there to help ensure asset and liability is included in the division of property settlement. Further, your Toronto family law firm offers several different cost-effective methods using alternative dispute resolution for reaching an amicable and mutually acceptable division of property settlements. These methods potentially help avoid placing you into a position, where the judge and court decides how property and assets are divided between you and the other party.
Keep in mind the above information is for reference purposes only and should not be used as actual legal advice. For professional legal advice and assistance with your divorce and the division of property settlement, contact Kain & Ball Family Law Lawyers now at 905-273-4588. We have the expertise and knowledge to help you obtain a satisfactory settlement agreement.